The court said the ruling imposed by the mayor of Cannes was legal but many religious groups were outraged.
Authorities in the glamorous seaside resort and nearby villages voted to ban full-body swimsuits from the end of last month.
The court said the ban was legal under a law which bans people neglecting common rules on "relations between public authorities and private individuals" on the basis of religion.
The judge noted the ban came "in the context of the state of emergency and recent Islamist attacks, notably in Nice a month ago", according to the BBC.
The Collective Against Islamophobia in France said it would appeal against the decision in France's highest administrative court. [Evening Standard] Read more